The UK also imports tasty tomatoes-on-the-vine from Spain and other countries. It's a consumer choice. If and when transportation costs soar, the UK might start producing more watery tomatoes.

You yourself say that Spanish kiwi are of inferior quality. I have no problem with them being cheaper on that account, especially since they also qualify as "more local" produce than NZ kiwi. You pay two premiums for grade-A kiwi from kiwi country, and there's nothing wrong with that.

Anyway, I don't see any problem with crappy local produce other than it's crappy. Maybe local producers should shift to crops that are actually tasty when grown locally, except that there is demand for grade B and grade C produce. I have pointed out on a different occasion that the demand for organic produce might be inelastic: it's the people who either can afford the premium or were already paying a premium for higher quality produce that switch.

Is your problem that when peak oil hits you won't be able to enjoy affordable tasty produce shipped in from the antipodes and the decreasing quality of your kiwi will result in decreasing quality of life?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman